Cyprus tourism sector reports decline in occupancy and annual outlook for 2026

Hotel occupancy across Cyprus is averaging approximately 85% for July and August 2026, marking a notable decline compared to the record-breaking figures of the previous year, when August occupancy peaked at 97%. Christos Angelides, Director General of the Cyprus Hotel Association (PASYXE), and representatives from the Association of Cyprus Travel and Tourism Agents (ACTTA) attribute this downturn to regional conflicts, which have led to increased energy costs and consistently high airfare prices. These factors have impacted the overall tourism industry, with sector experts projecting that the total number of overnight stays for 2026 will be 12% to 14% lower than in 2025.

Despite these challenges, the industry has observed a recent improvement in booking momentum. This positive shift is largely driven by last-minute demand and increased activity during long weekends, particularly from domestic travelers and visitors from neighboring countries. While stakeholders remain optimistic about current trends and ongoing coordinated efforts to support the sector, significant uncertainty remains regarding the autumn season. Industry leaders continue to monitor the situation closely, emphasizing that while current demand is helping to stabilize the figures, the sector faces substantial obstacles in matching the record-setting performance of the previous year.